If you are seeking high return investments, you will get many. You, however, must possess the ability to face the amount of risk involved in it. Most investment options providing high return are never safe.
- Mutual Funds
you would argue that a mutual fund is a comparatively safe investment and provides a higher return. High Return – Sometimes True, No Risk – Completely Wrong. Most of the funds promoted by asset managers are the one performing better in short term. As soon as this fund starts under performing, they drop it and promote other funds. They get their fees and at the end of the day, you are the one who is disappointed. It’s important to understand a mutual fund is made up of many stocks, so if stocks are risky, so are funding.
- Real Estate
If invested at right time, you can earn a fortune in real estate. This is one of my favorite high return investments as along with providing financial security, it provides shelter as well. People who invest in real estate carefully and with a long-term view will definitely gain excellent returns. It generally beats mutual fund returns.
- Piece of Land
Buying a piece of land can prove to be more beneficial than real estate. Returns, however, depend on the location and its development prediction too much extent. The problem with this investment is you cannot buy it with a small amount.
- Leverage Funds
Along with providing good returns, this is also one of the riskiest investment options available today. Leverage funds usually involve trading in options and currencies. If you, however, don’t know much about the functioning of this market, it’s advisable not to invest in it. Few have earned and many have lost their shirt dealing in leverage funds.
If we consider the risk-reward ratio of the above given investment options, returns generated by land and real estate is much higher than leverage funds and mutual funds. And if you want to earn a huge profit within a short period in real estate, you need to pick the right location; probably a place that is about to develop or become popular.